The region of demand in which the monopolist will choose a price-output combination will be:
A. Inelastic because as price declines and output increases, total revenue will increase
B. Inelastic because as price declines and output increases, total revenue will decrease
C. Elastic because as price declines and output increases, total revenue will decrease
D. Elastic because as price declines and output increases, total revenue will increase
D. Elastic because as price declines and output increases, total revenue will increase
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The slope of the isocost line tells the firm how much
A) capital must be reduced to keep total cost constant when hiring one more unit of labor. B) capital must be increased to keep total cost constant when hiring one more unit of labor. C) more expensive a unit of capital costs relative to a unit of labor. D) the isocost curve will shift outward if the firm wishes to produce more.
If an individual consumes only two goods and consumption of one good increases, then in order to keep the consumer on the same indifference curve, consumption of the other good must
A) increase. B) decrease. C) increase proportionately. D) become negative.